Conditions for operating a taxi transport business

The legal framework governing taxi transportation in Serbia is established by the Law on Passenger Transportation by Road (“Official Gazette of the Republic of Serbia,” Nos. 68/2015, 41/2018, 44/2018 – other law, 83/2018, 31/2019, and 9/2020), while each local self-government unit may also prescribe additional local requirements.

Taxi transportation may be provided under a taxi transportation authorisation issued by the municipal or city administration, or by the administration responsible for transportation matters, within the number of taxi vehicles permitted by a local self-government unit act.

The authorisation is issued to a company or entrepreneur that has “taxi transportation” registered as its primary business activity in the Business Entities Register and meets the requirements concerning its registered office, drivers, vehicles, and business reputation.

Below, we highlight the most important steps and obligations you must meet before the first drive.

The authorisation is the first requirement

A company or entrepreneur may provide taxi transportation if “taxi transportation” is registered as its predominant business activity and it obtains authorisation from the competent municipal or city administration.

The authorisation is issued after the competent authority verifies that all statutory requirements have been met cumulatively with respect to:

the carrier’s registered office
the driver
the vehicle
business reputation
the permitted number of taxi vehicles within the territory of the relevant local self-government unit.

The registered office must be in the relevant city or municipality

A company may obtain authorisation if its registered office is within the territory of the local self-government unit issuing the authorisation. The registered office must include business premises where the company keep business records, particularly accounting and personnel records, as well as other documentation relevant to carrying out taxi transportation activities.

An entrepreneur must have both their registered office and residence within the same local self-government unit issuing the authorisation.

This requirement is particularly important in practice: relocating a company’s registered office, or an entrepreneur’s registered office or residence, to another local self-government unit automatically causes the authorisation to cease to be valid by operation of law.

Requirements the driver must meet

A taxi driver must meet several cumulative requirements. They must:

hold a Category B driver’s license;
qualify as a motor vehicle driver, a road transportation technician, or a fifth-level specialist driver;
have at least five years of work experience as a motor vehicle driver before submitting the application;
hold a medical certificate confirming their fitness to operate a motor vehicle, as prescribed by the regulations governing road traffic safety for drivers whose primary occupation is driving;
not have been sentenced to more than two years in prison for a criminal offence against life and limb, sexual freedom, property, public transportation safety, public health, or public order and peace, for as long as the legal consequences of the conviction remain in effect, nor be subject to a protective measure prohibiting the operation of a motor vehicle for the duration of that measure;
have passed an examination on knowledge of the local self-government unit if, according to the data of the Statistical Office of the Republic of Serbia from the most recent census, the local self-government unit has more than 100,000 inhabitants;
be employed by an entrepreneur or company. In a sole proprietorship, the entrepreneur must meet the driver requirements.

A candidate who holds a driver qualification card, a driver’s license bearing code “95,” or a certificate of professional competence for performing the duties of a professional driver is considered to meet the requirements concerning qualifications and work experience.

What type of passenger vehicle is required?

A taxi vehicle must be a passenger vehicle owned or leased by the entrepreneur or company. The passenger vehicle must meet all statutory requirements, including the following:

it must be registered for five seats, including the driver’s seat;
it must have at least two doors on the right side and left-hand steering;
it must have air conditioning;
the wheelbase must be at least 2,550 mm, or the trunk capacity must be at least 350 litres;
it must have a properly functioning taximeter installed, adjusted, and certified exclusively in accordance with the law governing metrology and the City of Belgrade’s decision regulating in greater detail how taxi transportation is provided and establishing and harmonising the fare within the taxi tariff under which taxi transportation must be provided within its territory;
it must be registered based on the location of the company’s or entrepreneur’s registered office, with license plates whose registration mark contains the Latin letters TX in the last two positions;
it must have a roof sign with built-in lighting bearing the inscription “TAXI,” the roof sign number, and the identification of the issuer of the roof sign;
it must meet the specific and additional requirements prescribed by the local self-government unit regarding vehicle markings, the vehicle’s appearance and cleanliness, and the proper functioning of its equipment.

Good Business Reputation and Tax Obligations

Obtaining authorisation is not sufficient for a registered entrepreneur or business entity to exist. The carrier must also meet the good business reputation requirement.

A business entity does not meet the good business reputation requirement if it has been issued a final protective measure prohibiting the performance of public road transportation activities, as prescribed by the law governing commercial offences or the law governing misdemeanours, for the duration of that measure.

An entrepreneur does not meet the good business reputation requirement if they have been issued a final protective measure prohibiting the performance of public road transportation activities, as prescribed by the law governing misdemeanours, for the duration of that measure.

A business entity or an entrepreneur does not meet the good business reputation requirement if it has unpaid tax obligations arising from its registered business activity. Importantly, a debt properly repaid under an approved rescheduling arrangement is not considered an outstanding tax obligation with the meaning of the law.

The 40-Day Deadline After Authorisation Is Issued, Along with Other Statutory Deadlines

After you obtain authorisation to provide taxi transportation services, the process is not yet complete. Within 40 days of receiving the authorisation, you must:

register the start of the business activity with the competent business entity register;
submit to the municipal or city administration, or to the administration responsible for transportation matters, documentation concerning the passenger vehicle proving:
a) that it has a properly functioning taximeter installed, adjusted, and certified exclusively in accordance with the law governing metrology and the City of Belgrade’s decision that more specifically regulates the provision of taxi transportation services and establishes and harmonises the price within the taxi fare applicable in its territory;
b) that it is registered at the place where the business entity or sole proprietorship has its registered office, with licence plates whose registration mark contains the Latin letters TX in the last two positions;
c) that it has a roof sign with installed lighting bearing the inscription “TAXI”, the roof sign number, and the identification mark of the issuer of the roof sign;
d) that it meets the specific and special requirements prescribed by the local self-government unit concerning vehicle markings, the vehicle’s appearance and cleanliness, and the proper functioning of its equipment.

Only after the required documentation has been submitted will the municipal or city administration, or the administration responsible for transportation matters, issue the taxi carrier a taxi permit for the driver and a taxi permit for the vehicle. The right to begin providing taxi transportation services arises after those permits have been issued. If the documentation is not submitted within the prescribed deadline, the authorisation may be revoked.

For the lawful provision of services, the taxi vehicle must contain:

a photocopy of the authorisation or the authorisation in electronic form;
the taxi permit for the driver;
the taxi permit for the vehicle;
the price list established by a decision of the local self-government unit;
an employment contract for a driver employed by the taxi carrier;
proof of passenger insurance against the consequences of accidents in public transportation;
a notice from the municipal or city administration, or the administration responsible for transportation matters, stating the telephone number that taxi users may call to submit complaints about the taxi service provided;
a photocopy of the consent or the consent in electronic form to use the roof sign;
documents specified by an act of the local self-government unit.

The taxi vehicle must have a properly functioning certified taximeter installed in a location visible to the passenger and a driver’s taxi permit displayed prominently. Any change of vehicle or driver must be reported within 15 days, and any interruption in business activity within two days.

The administration verifies at least once every three years whether the statutory requirements continue to be met; if they are not, a deadline is granted for submitting additional documentation, followed by revocation of the authorisation.

Rules During Operation

Taxi transportation services are provided within the territory of the local self-government unit that issued the authorisation. A ride may end outside that territory only if it began within the territory for which the carrier holds authorisation. After dropping off a passenger outside that territory, the driver must remove the roof sign, except when they are required to pick up the same passenger again – in that case, the taximeter must remain running while the driver waits.

As a rule, the taximeter must be used during the drive. An exception may apply to rides beginning at specially designated locations, such as an airport, railway station, or bus station, if a fixed price has been prescribed by a local regulation.

For each service provided, the passenger must be issued a receipt containing information about the carrier, the date, the route or mileage, and the fare.

Why Is Compliance with Legal Requirements Important?

Unauthorised provision of taxi transportation services carries serious consequences. The Law on the Transportation of Passengers by Road (“Official Gazette of the Republic of Serbia,” Nos. 68/2015, 41/2018, 44/2018 – other law, 83/2018, 31/2019, and 9/2020) prescribes fines for misdemeanours or commercial offences. For providing taxi transportation services without authorisation, in addition to a fine, a protective measure may also be imposed involving the confiscation of the item – the vehicle used to commit the misdemeanour or commercial offence.